Punj Lloyd plans $200 mn QIP

Mayur Shekhar Jha, TNNAug 8, 2007, 12.00am IST

NEW DELHI: Infrastructure major Punj Lloyd is raising $200 million (over Rs 800 crore) through a qualified institutional placement (QIP).

The money will be used to part-fund its recent acquisition of 25% stake in Pipavav Shipyard (PSL) as well as for its planned capacity expansion. Citibank and Kotak have been appointed advisors for the placement.

The company will raise this amount by August 10, by issuing up to 1.75 crore shares at a floor price of Rs 270 per share. Following the equity placement, Punj Lloyd chairman Atul Punj's personal holding in the company will come down to 35.5% from 38%. As a whole, the Punj family holds 53.4% in the company.

Proceeds from the QIP will also be used to part-finance capex plans. Punj Lloyd had recently announced acquisition of a 25.1% in PSL for about Rs 400 crore.